Altius Renewable Royalties Announces US $ 52.5 Million Royalty Investment in Northleaf Wind and Solar Portfolio; New developer fee added
ST. JOHN’S, Newfoundland, September 30, 2021– (BUSINESS WIRE) – Altius Renewable Royalties (TSX: ARR) (OTCQX: ATRWF) (“ARR”) reports that its joint venture subsidiary Great Bay Renewables (“GBR”) has completed a 52.5 royalty investment million US dollars with Northleaf Capital Partners (“Northleaf”) related to three operational wind and solar renewable energy projects located in Texas. GBR is a joint venture of ARR and funds managed by subsidiaries of Apollo Global Management, Inc. (NYSE: APO) (“Apollo Funds”).
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Old Settler and Cotton Plains Wind Projects (Photo credit: Apex Clean Energy)
Acquisition of royalties from the Cotton Plains portfolio
The newly acquired revenue-based royalty portfolio includes: (1) the 151 MW Old Settler Wind Project, (2) the 50 MW Cotton Plains Wind Project and (3) the 15 MW Phantom Solar Project (collectively, projects “) . Production from Cotton Plains and Phantom Solar is sold at a fixed price under long-term contracts with the US Department of Defense until January 2045, while production from Old Settler will be sold on the ERCOT market. . All three projects have been in commercial operation since 2017.
The royalty investment has been structured using royalty rates that vary over time and provide GBR with US $ 4-7 million per year during the first 10 years of the investment. The structure also allows ARR to meet its investment objectives while optimizing the cash flow profile at the project level of Northleaf. The royalty funding will be used to repay existing debt financing and provide additional working capital.
Jared Waldron, Managing Director of Northleaf, said: “We are delighted to partner with GBR to implement an innovative financing solution that will create value for our investors. As long-term assets producing stable cash flows from clean power generation, the projects will benefit from the long-term financing offered by this new royalty structure. “
ARR and Apollo Funds have agreed to fund Northleaf’s investment with approximately 80% of the capital provided by Apollo Funds and the balance of US $ 11.6 million to be funded directly by ARR. Apollo Funds has now fulfilled its commitment to acquire a total 50% stake in GBR. Going forward, ARR and Apollo Funds are expected to fund new opportunities on an equal footing.
Additional information regarding the Northleaf transaction can be found on arr.energy and in a material change report filed on SEDAR.
Fee for new developers
ARR is also pleased to announce that it has been made aware of the sale of a 500 MW renewable energy project in Texas from one of its funded developer partners to a confidential buyer and the creation of a royalty. 2.5% in favor of GBR. GBR has been informed that the project is currently expected to issue a prosecution notice in early 2022.
Brian Dalton, CEO of ARR, commented: “Our joint venture subsidiary GBR expects cash flow to turn positive in 2022. This milestone was reached earlier than expected and is a huge credit to the team. . In addition, the recent completion of investments related to Four Operating Phase Assets has implications for the potential scope of future capital deployment and the greater role we can play in enabling the transition to clean energy. has resulted in the rapid growth of our royalty portfolio to now cover over 3 GW of renewable energy projects. “
This press release contains forward-looking information. This information includes, but is not limited to, statements regarding the use of proceeds, forecast annual income and cash flow, achievement of investment threshold rates and future investment potential. The use of forward-looking information in this press release is based on reasonable assumptions and beliefs of management in light of the information available to it at the time these statements are made. The forward-looking information contained in the press release is presented for the purpose of helping ARR shareholders understand this transaction and the expected impact on ARR. By their nature, forward-looking information requires ARR to make assumptions and is subject to inherent risks and uncertainties which give rise to the possibility that actual results will differ materially from such statements. Although the Company believes that the predictions, forecasts, expectations or conclusions reflected in the forward-looking information are reasonable, it cannot guarantee that these elements will prove to be correct. This forward-looking information is subject to uncertainties and other factors that could cause actual results to differ materially from these statements. These factors include, but are not limited to: changes in general industry, market and economic conditions, equipment performance, changes in electricity prices, seasonality, weather events, earnings disputes and other variables. The forward-looking information included in this press release is expressly qualified by this cautionary statement and is made as of the date of this press release. ARR assumes no obligation to publicly update or revise any forward-looking information, except as required by Canadian securities laws.
About Northleaf Capital Partners
Northleaf Capital Partners is a global private market investment firm with US $ 17 billion in private equity, private credit and infrastructure commitments under management for public, corporate and pension plans. multi-employer, endowment funds, foundations, financial institutions and family offices. . Northleaf’s team of 150 people, located in Toronto, Montreal, London, New York, Chicago, Menlo Park and Melbourne, focuses exclusively on researching, evaluating and managing private market investments at scale. global. Northleaf’s portfolio includes more than 400 active investments in 35 countries, with a focus on companies and mid-market assets. For more information on Northleaf, please visit www.northleafcapital.com.
About the ARR
ARR is a newly formed renewable energy company engaged in providing long-term royalty-level investment capital to renewable energy developers, operators and initiators through its Great Bay Renewables joint venture. The Company combines industry expertise with innovative and partner-driven solutions to foster the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
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Email: [email protected]
Phone. : 1.877.576.2209